Concentrated ownership and corporate performance revisited: The case of shipping

The relationship between business cycles and capital structure choice: The case of the international shipping industry

“…Businesses with highly concentrated ownership reduce agency costs between shareholders and managers, thus leading to easier equity issuances. As a result, a negative relationship between concentrated ownership and leverage is expected (see Tsionas, Merikas, & Merika, 2012;Andrikopoulos, Merika, Triantafyllou, & Merikas, 2013). It follows that firms with low concentration of ownership (higher agency costs) prefer more risky investments that may lead to higher returns, as creditors are the ones to assume losses in the event of default, thus pushing the cost of debt at higher levels.…”

“…the incidence of a few major stockholders is ambiguous. On the one hand, major shareholders monitor efficiently their agents and reduce agency costs between managers and shareholders, allowing for easier equity issuances (Tsionas, Merikas, & Merika, 2012;Andrikopoulos, Merika, Triantafyllou, & Merikas, 2013). On the other hand, a high level of leverage is discouraging any potential acquisition towards the firm (Rajan & Zingales, 1995).…”

Sermaye Yapısını Etkileyen Faktörler: BIST Ulaştırma Endeksinde Bir Uygulama

“…Thus firms lower their costs of financial distress as long as they are profitable (Frank and Goyal, 2009), leading to a positive relationship. In this study, following Andreou et al (2014), Tsionas et al (2012), Tsatsaronis (2011-2012), two separate variables are used to measure profitability as return on assets (ROA), and return on equity (ROE). As a result the hypothesis below is developed: = Firm profitability significantly affects capital structure decisions…”

The Relationship between Ownership Structure and Firm’s Performance: An Empirical Evidence from Palestine

“…Tsionas et al (2012) points out that the relationship between concentration ownership and performance is positive in the shipping industry. Also, Omrana et al (2008) found a positive effect for ownership concentration on market performance for four Arab countries (Egypt, Jordan, Oman and Tunisia.).…”